Vietnam Cuts Tariffs on Imported Electronics Parts

Vietnam Cuts Tariffs on Imported Electronics Parts

Vietnam has substantially cut tariffs on a large number of imported electronics parts by between 5 per cent and 20 per cent, the Ministry of Finance announced last week.

The products subject to the tariff cut include TV antennas, CD and VCD players, digital cameras, mobile phone beepers, and transformers etc., the ministry said. The new tax rates for these products would range from 0 per cent to 20 per cent.

Ministry officials also said the prices of electronics products in the domestic market would not change after the tariff reduction.

Early this week, domestic electronics makers reportedly asked the finance ministry to remove import duties on electronics parts.

Local electronics businesses say their production will be hit if the proposal is not approved, as tariffs on electronics products imported to Vietnam will be reduced to 5 per cent this year and 0 per cent in 2006 under the Common Effective Preferential Tariff (CEPT) scheme.

The ministry said it did not totally agree with the businesses, but it would change the tax rates to facilitate the operations of electronics makers.
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